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S74 Small Remanufacturing Shop Design – Level 1 World Expo 2003 Las Vegas, Nevada Sunday, September 14, 2003

S74 Small Remanufacturing Shop Design – Level 1

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Page 1: S74 Small Remanufacturing Shop Design – Level 1

S74 Small Remanufacturing Shop Design – Level 1

World Expo 2003Las Vegas, NevadaSunday, September 14, 2003

Page 2: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 2

Timing is everything

• Remanufacturing & Printer Service is a couple decades smarter

New Business / New Product Life Cycles• Development 1986• Growth 1995• Expansion 1999• Maturity Laser ??

• Saturation• Decline

Page 3: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 3

Opportunity Placement • Development stage, there are no cartridge sales at all. However

manufacturing must support a development area and resources to insure a timely product launch.

• Growth stage, sales are slow and marketing costs are high; often manufacturing resources need to be supplemented by frequent training sessions and manufacturing team building.

• Expansion stage, sales should grow more rapidly, and manufacturing teams are executing their well thought out plans to accommodate growth.

• Maturity stage, sales will plateau as most customers who want the product have quality sources for the product. Manufacturing teams have predicted this plateau and the production schedules will adjust for sales volume and inventory reduction.

• Saturation stage, every customer who wants the cartridge product has several competitive sources for acquisition, and there are few opportunities for increasing sales.

• Decline stage, cartridge sales fall and the product eventually becomes obsolete. Manufacturing teams have transitioned resources to new products and reduced raw materials and finished goods to reduce financial risk.

Page 4: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 4

Long Range Plan • Data

2003 Pages Printed by Group

Group 449%

Group 59%

Group 325%

Group 213%

Group 61%

Group 13%

Group 1

Group 2

Group 3

Group 4

Group 5

Group 6

Home and Small Office Printing Group 1

Education Group 2

Professional Business Communication Group 3

Business High Volume Group 4

Business Presentation / Marketing Group 5

Publishing / Proofing / Pre-press Group 6

Page 5: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 5

US Market (CAP Ventures) & PRINTER Placements

TOTAL ANNUAL CARTRIDGE SALES

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

year

SALE

S IN

MIL

LIO

NS

OF

UN

ITS

rmfg

ttl. Mkt.

rmfg 11.1 12.6 13.0 14.2 15.0 16.0 16.9

ttl. Mkt. 35.1 44.0 47.9 52.8 56.4 58.4 60.8

1996 1997 1998 1999 2000 2001 2002

Total Cartridge Market

Remanufactured Cartridge Market

~27%

OEM Portion

RM Portion

Page 6: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 6

Laser / Ink Jet CartridgeConsumables Market

Consumables / Revenue

$0.00 $2.00 $4.00 $6.00 $8.00

1997

2000

2001

2002

2003

Bill

ions

of U

S D

olla

rs Group 6

Group 5

Group 4

Group 3

Group 2

Group 1

Page 7: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 7

Value Chain Details

Operations• Production• Equipment

Maintenance • Rework• Facilities• Inventory• H/R

Inbound Logistics

• Receiving / Inspection• Production Scheduling • Inventory Control• Warehouse management (Position control)

Outbound Logistics

• Order Acceptance• Picking • Inventory Adjust• Cycle Count / Inventory Adjust• Ship Confirm

Service and Support

• Technical Training• Production Process Development• Testing• Documentation• Recruit / Hire

Page 8: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 8

Value Chain Details

Sales and Marketing

• Sales Goals• Product Management • Advertisement• Customer

Identification and priority

• Forecasting

Service and Support

•Training•Sales Process Development•Customer Support• Documentation

Page 9: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 9

Product Success Metrics

• Image Performance– Halftone reproduction– Line art

• Yield• Solid fill uniformity• Printer maintenance reduced

– Fuser performance– cleanliness

• Standards and industry uniformity• Ultimately it’s Profit $$$$$$$$$$$$$$$$$$$$$

Page 10: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 10

Objectives• Consistency; To provide your customers with

functional products, insist on consistency from your vendors. The next shipment of a product has to be the same as the last acceptable shipment.

• Reliability; A statistical sampling system enables you to ensure your vendors are reliable, with good product, in a timely manner, conforming to the specifications established during the development phase of product acquisition.

• Accuracy; Incoming inspectors confirm the accuracy of incoming product. Confirming product identification, conformance to specification, packaging and labeling.

Page 11: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 11

Quality is People

• Every group, department, from the top down …….. execute

• Process management measures results• Results reaffirm the plan• Constant improvement• Lowers Cost

Page 12: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 12

Quality is people

Process Development

Consistent Product & Service Understand limitations of the product … Printer or

Cartridge Specification and accuracy Corrective action Training …. Training …… and more

Page 13: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 13

Electronic Printing Technology

• Large history of method standards for the copier industry– Toner testing– Photoconductor performance– Customer satisfaction

• Remanufacturing a consumable – Use Automotive “parts” industry as a model– Customer quality assurance– Purchasing guideline– Core replacement– Faceless and nameless ACCEPTED Quality

Page 14: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 14

Quality: First and Foremost

• Objectives: • Consistency,

Reliability, Accuracy.• Raw Materials

( Purchases)

• Empties• Incoming Inspection:

Quality Control Methods and Examples

• Allies: Interactive Vendors, Customer feedback,

• Adversaries: Variation, Unexpected Vendor modifications, Inappropriate process deviation

• Teamwork

Page 15: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 15

Test …and Measurement

• Statistics 101– List ALL areas where data can be gathered

• Accuracy• Usable data

– Taking the data is the first step• Leaders need time to work with the data to make

process changes• Acquisition and presentation

Page 16: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 16

Product or Service Feasibility

• Develop product model– Printer placement and acceptance– Cartridge mechanics and access– Marketing info– Printer Past history– CPP … Total cost of ownership

• Production Assumptions and Estimates – Develop timeline– Imagineer process and costing

Page 17: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 17

Process Design & Details

• Cell …………….. To ……………...– From past experience develop cell picture– Solve material flow– Breakdown training issues– Document bill of materials (BoM)– remember the “long range plan” (LRP)

• ……… Managed Production– Correct process– Training– Scale UP

Page 18: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 18

Prototype Process• Draw pictures … cut out the paper pieces

– Map the process from the Cell stage to Managed production

– Look at the facilities details• Air .. Heat … Power .. Lights … Traffic … Storage

– Pick your people resources … share the ideas

• Set up a dummy cell …. Dry run– Check Raw materials flow– Who’s waiting

– Check your plan

Page 19: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 19

Corrective Action (plan for it)

• Process defects or procedural changes– Review with all production teams … you may have

some ability to kill a problem before it starts

• Retain Visual samples of defects for training• Preparation inspections prevent drone

mistakes … Awareness of the process is crucial• End of shift positive reinforcement

– Announce data– Show / Chart progress– Training awards … not material … verbal praise in

front of peers

Page 20: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 20

Team Leaders are “people”

• Groom with future goals in mind• TRAINING is communicating your

plan• Clear concise and ATTAINABLE Goals• POSITIVE Atmosphere• Watch for “diamonds in the rough”

Page 21: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 21

Raw Materials Management• Empties

– Source … Cleaning … Inspect …. Waste … Cost

• Cleaning & Handling– Storage … Damage Control … Assembly

Staging– Solvents … Inspect .. Waste … Time … Cost

• Assembly– Readiness … Tools … Inspection … Time ..

Cost

• Printer Parts and rebuilds….

Page 22: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 22

Process Foundry• Build the REAL Cell

– Staff Cell

• Order protocol & forecast• TRAINING• Flexibility

– Document changes and corrective action

• Statistics & Process Measurement– Raw material yields– Flow issues– Assembly rates– Test performance

Page 23: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 23

Capital Equipment

• Primary Equipment requirements– Time savings– Quality enhancement– Training required– Human component

• Secondary requirements– Maintenance– Obsolescence– Expansion

Page 24: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 24

Productivity• Facility Layout

– Material flow – Cleanliness

• Documented Procedures for simple tasks– Simplifies training– creates standard

• Training– Cross training, and daily rotation– Team Leaders … Building Quality

• Sound Forecast– Minimize... waste, storage,hassles– Supply Chain Management

Page 25: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 25

Cell to Managed ProductionTransition• Planned transition …

– Pick the criteria early – Set training goals early

• Quality is a job well thought out and well tooled

• Excellent training and complete task description fosters worker happiness

• Success is about people

Page 26: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 26

Generic CellEmpties

Empties.. Disassembly & Cleaning & Seal

Test & await packaging

Remove reject material

AssembleInspect & Stage

Planned new material, remove waste

Page 27: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 27

Keep it Simple Stupid (KISS)

• Visual aids … 75% of learning is facilitated by visual cognition. PICTURES not WORDS

• Constant positive reinforcement is Constant Improvement.

• Cross train similar job functions .. Remember social circles and peer pressure are your allies– Disassembly ---- Assembly– Evacuation ---- Component Prep– Pre Test ---- Final Test

Page 28: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 28

Assess each work function• Map mini process

– document– training guidelines– Timing

• Mini production for some work function– Skill assessment– Time

• Realistic training goals– Critical for Quality Control– No job is more important

Page 29: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 29

Safety Requirements

• FROM the TOP Down– ALL quality management tools start from

acceptance at the top … Safety requirements and concerns are PRIMARY

• High visibility area for procedures and Training

• Monthly assessments

Page 30: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 30

Print Performance Data

5000

5500

6000

6500

7000

7500

8000

9000 9100 9200 9300 9400

Lot #

Pag

e Yie

ld

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Image D

ensi

ty

Yield

SF.ID

20% HT

Tracking

Page 31: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 31

Drums• Visual Inspection: All OPC Drums are

inspected for surface defects. Visual contaminants or defects lead to further testing and/or rejection. Record and compare “lot number” identification on boxes. Store OPCs in a designated area, mark the area well. Data base lot data.

• Electrical Properties: Electrical data provided by the vendor is compared to past data to confirm specification compliance. If a discrepancy appears or the data is inconsistent then contact the vendor for modification or specification change. Use print tests with your toner combination to determine the acceptability of the shipment.

Page 32: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 32

Check For:- Consistent Packaging- Product Verification- Pin holes- Fish eyes- Coating Defects and/or contaminates- Unclean Contacts- Stains- Voids

Rubber Gloves - required. Visual InspectionQ.C. Sample--if needed-- Cartridge fit and/or Print test

PCR Incoming Inspection checklist

Page 33: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 33

Visual Inspection - Use a Sample or Photocopy

Sample Destructive testing: ie: Split Seal

1. Strip backing from seal examine for consistent glue. 2. Press seal on clean, flat surface3. Pull tab on seal.4. Examine for uniform removal of material.5. --if needed-- Cartridge fit and/or UPS test.

RM Material Incoming Inspection method

Page 34: S74 Small Remanufacturing Shop Design – Level 1

Apr 10, 2023 Expo 2003 34

Summary• More than 15 individual items may be

purchase for high quality cartridges today.• Less than 20% of remanufacturers have

established quality processes for their products.

• More than 500 remanufacturers will fail in the next year…. Because of quality.

• Less than 29% of the remanufactured cartridges sold last year met an OEM specification

• Lower Cost and higher profits will only be realized by executing a Total QMS system.